Netmarble Neo, a game developer spinoff of Netmarble Corp., South Korea’s largest mobile gaming company, announced that it had begun its initial public offering (IPO) process.
Netmarble Neo plans to go public during this year’s second half, adding to the flourishing domestic IPO market. Earlier, the video game developer applied for a preliminary review to the Korea Exchange, the country’s only securities exchange operator.
According to industry officials, Netmarble Neo would begin listing its shares on South Korea’s main bourse sometime this year. Netmarble Neo also chose Mirae Asset Securities Co. and NH Investment & Securities Co. as its IPO’s managers.
Strengthening Its Game Market Leadership
Previously in 2012, Netmarble Neo spun off from its parent company Netmarble, becoming a leading game publisher and global competitor. Netmarble is currently Netmarble Neo’s biggest shareholder, owning an 80.3% stake as of 2020’s third quarter.
Since splitting off as an independent entity, Netmarble Neo gained considerable traction for its “Lineage 2: Revolution,” a popular massively multiplayer online role-playing game introduced in 2016.
After gaining international success, Netmarble Neo actively acquired various gaming companies, including Nurien, ReBorn Games, and Turnon Games. Netmarble Neo also continuously launched smash hit, high-quality mobile games, including “Go! Go! Go! Racer” in 2012 and “The King of Fighters Allstar” in 2018.
In addition to its globally competitive portfolio, Netmarble Neo plans to introduce more mobile games, reinforcing its game-changing industry leadership. One of its future game releases includes “Second Country: Cross Worlds,” based on the successful Japanese “Ni no Kuni” role-playing game.
Local Gaming Industry’s Exponential Growth
The mobile gaming company also recorded a 43.2 billion won operating profit on an 88 billion won ($78 million) revenue in 2020. Investment banking industry sources stated that Netmarble Neo’s corporate value could reach the 1 trillion won mark.
In the Korea Financial Investment Association’s over-the-counter market, Netmarble Neo shares currently trade at 180,000 won per piece. As a result, the company’s market capitalization amounted to 2.26 trillion won ($2 billion).
If the Netmarble spinoff’s KOSPI share listing achieves promising results, it could rival Krafton Inc.’s planned 2021 IPO. Moreover, Krafton plans to earn as high as 5.6 trillion won ($5 billion) in its share sale.
Additionally, industry watchers expect the South Korean gaming sector to grow by 7.4% this year, exceeding 18.3 trillion won. Mobile games make up most of the local gaming industry’s growth, accounting for 55.2% of the market.
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